TowerJazz Posts Record Revenues, Predicts Strong 2016

Mylan spending $100,000 on Israeli media campaign; Elbit profit up 42% in third quarter, led by Asian sales; Shares end higher in broad-based gains;

Ofer Vaknin

TowerJazz posts record revenues, predicts strong 2016

TowerJazz said yesterday it expects strong growth into 2016 after reporting higher quarterly profit that beat estimates on rising orders from its largest customers. The chipmaker said it earned 62 cents per diluted share in the third quarter, excluding one-time items, up from 39 cents a year earlier. Revenue rose to a record $244.2 million from $226 million. The numbers were ahead of the forecasted 57 cents on revenue of $243.8 million, according to analysts surveyed by Thomson Reuters I/B/E/S. This year we will have broken the $1 billion annualized revenue run rate, which is something we said we would do this year, CEO Russell Ellwanger told Reuters. 2016 looks to be an excellent year for the company. TowerJazz forecast fourth-quarter revenue of $252 million, plus or minus 5%, representing year-over-year growth of 7%. Three strategic customers have reserved future capacity for 2016 and beyond, the company said. Shares of TowerJazz closed up 2.5% at 57.30 shekels ($14.69) and were the most active shares of the day in Tel Aviv. (Reuters)

Mylan spending $100,000 on Israeli media campaign

Mylan, the U.S. drug maker in the final stretch of a hostile bid for Perrigo, is spending about 400,000 shekels ($102,000) on a media campaign this week aimed at winning over Perrigos Israeli shareholders and enhancing its profile. With a Friday deadline for the offer, Mylan has been sponsoring image-enhancing ads in financial sections of newspapers and websites. However, the ads dont make any direct reference to the offer of $179 per share for Perrigo, a U.S. company that is traded on the Tel Aviv Stock Exchange and is about 12% Israeli-owned. The company wants to present itself to the capital market in Israel and get to know investors, explained Eyal Arad, who is presenting the company. The campaign included a visit by top Mylan executives last month as well as listing Mylan shares on the Tel Aviv Stock Exchange, where they ended 1% higher yesterday at 180.10 shekels. Perrigo gained 3.1% to end at 642.20 shekels. (Nati Tucker)

Elbit profit up 42% in third quarter, led by Asian sales

Elbit Systems, the defense electronics company, said yesterday that quarterly profit rose almost 42% from a year ago, boosted by higher sales to the Asia-Pacific region and favorable exchange rates. The company reported it earned $62.3 million, or $1.46 per diluted share, excluding one-time items, in the third quarter, up from $43.9 million, or $1.03 per diluted share a year earlier. Revenue gained 5.8% to $764.8 million. Our results in the third quarter reflect a strong performance in Asia-Pacific, driven by increased defense spending in this region over the past few years, said CEO Bezhalel Machlis. We are also witnessing a growing renewal of interest for our technologies and operational solutions in Europe, which creates the potential for future growth in this important market. Elbits order backlog reached $6.4 billion, up by $200 million from a year ago. Shares of Elbit finished ahead 2.9% at 323 shekels ($82.81). (TheMarker Staff)

Shares end higher in broad-based gains

Tel Aviv shares ended higher yesterdfay in a broad move upward that encompassed all but financial markets. The benchmark TA-25 index ended 0.6% higher at 1,574.12 points while the TA-100 added 0.7% to 1,363.64. Turnover was 1.22 billion shekels ($310 million). Opko Health rallied for a second day, gaining 4.2% yesterday to end at 42.80 shekels, after the company turned in stronger-than-expected third-quarter financial results after market close on Monday. Magic led TA-100 gain, advancing 6.6% to a 22.41 shekel close after it said third-quarter net after items was up 14% from a year ago, reaching $5.7 million. Frutarom gained 2.2% to 159.60 after it reported it bought 75% of Amco of Poland for $20.7 million, its 11th acquisition so far this year. Mannkind dropped 8.8% to 8.02 shekels after the Israel Securities Authority barred mutual funds from buying stock in the biotech companys share offering. (Shelly Appelberg)